Invoice finance is a type of financing that allows businesses in the UK to access the cash tied up in their outstanding invoices. This can help businesses improve their cash flow and access the capital they need to grow and expand.

With invoice finance, a lender provides a business with a cash advance based on the value of their outstanding invoices. The business then repays the lender when their customers pay their invoices. This can provide businesses with immediate access to cash, without having to wait for their customers to pay their invoices.

There are two main types of invoice finance: factoring and discounting. Factoring involves selling the outstanding invoices to a lender, who then takes over the responsibility of collecting payment from the customers. Discounting, on the other hand, involves borrowing against the value of the outstanding invoices, with the business retaining responsibility for collecting payment from their customers.